Indonesia EEC

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Table of Contents
1.0 Executive Summary.............................................................................................................................1

Chart: Highlights ......................................................................................................................2
1.1 Objectives ...................................................................................................................................2
1.2 Mission........................................................................................................................................3
1.3 Keys to Success ........................................................................................................................3
2.0 Company Summary.............................................................................................................................4
2.1 Company Ownership .................................................................................................................4
2.2 Company History........................................................................................................................4
Chart: Past Performance .......................................................................................................5
Table: Past Performance .......................................................................................................6
2.3 Company Locations and Facilities ..........................................................................................6
3.0 Services................................................................................................................................................7
3.1 Service Description ...................................................................................................................7
3.2 Competitive Comparison..........................................................................................................7
3.3 Sales Literature ..........................................................................................................................7
3.4 Sourcing ......................................................................................................................................8
3.5 Technology..................................................................................................................................8
3.6 Future Services ..........................................................................................................................8
4.0 Market Analysis Summary..................................................................................................................8
4.1 Market Segmentation ................................................................................................................9
Table: Market Analysis .........................................................................................................10
Chart: Market Analysis (Pie)................................................................................................10
4.2 Target Market Segment Strategy...........................................................................................10
4.3 Service Business Analysis .....................................................................................................11
4.3.1 Major Local Players ....................................................................................................11
4.3.2 Major Foreign Players ................................................................................................12
4.3.3 Competition and Buying Patterns .............................................................................12
5.0 Strategy and Implementation Summary..........................................................................................12
5.1 Competitive Edge....................................................................................................................13
5.2 Sales Strategy..........................................................................................................................13
5.2.1 Sales Forecast ............................................................................................................14
Chart: Sales Monthly ...................................................................................................14
Chart: Sales by Year ...................................................................................................15
Table: Sales Forecast.................................................................................................15
6.0 Management Summary ....................................................................................................................15
6.1 Personnel Plan.........................................................................................................................16
Table: Personnel ...................................................................................................................16
6.2 Legal, Financial and Accounting Status ................................................................................16
7.0 Financial Plan ....................................................................................................................................17
7.1 Important Assumptions............................................................................................................17
Table: General Assumptions ...............................................................................................17
7.2 Break-even Analysis................................................................................................................18
Chart: Break-even Analysis .................................................................................................18
Table: Break-even Analysis .................................................................................................18
7.3 Projected Profit and Loss .......................................................................................................19
Chart: Gross Margin Yearly..................................................................................................19
Table: Profit and Loss ..........................................................................................................20
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Table of Contents
Chart: Profit Monthly .............................................................................................................20
Chart: Profit Yearly................................................................................................................21
Chart: Gross Margin Monthly ...............................................................................................21
7.4 Projected Cash Flow...............................................................................................................21
Chart: Cash ...........................................................................................................................22
Table: Cash Flow..................................................................................................................23
7.5 Projected Balance Sheet ........................................................................................................24
Table: Balance Sheet ...........................................................................................................24
7.6 Business Ratios .......................................................................................................................25
Table: Ratios .........................................................................................................................26
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
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Indonesia Energy Engineering & Construction
1.0 Executive Summary

Introduction
This business plan seeks to generate a significant increase in c ompany sales and profits from the
services of engineering, proc urement and construction (EPC) of power generation and power
delivery projects over the preceding year. This plan highlights a sales- revenue target for the
next five years. This target is seen as attainable through a proactive approach, by teaming up
with a project financing provider, partnering with reputable loc al and regional engineers,
suppliers, and construction firms to reduce competition, and improving pricing while reducing
risks. The required marketing budget for the duration of this plan will grow somewhat eac h
year. Based on the company's cash flow and previous profits, the company's expansion can be
carried out without any further increase in financial leverage.
The Company
Indonesia EEC was founded in 1996 and is based in Jakarta, Indonesia. The company is a
subsidiary of United States Energy Engineering & Construction (U.S. EEC). Indonesia EEC offers
good quality and cost effective service in engineering, design, proc urement, project
management, construction and construction management, environmental consulting, and other
consulting services in relation to the design, building and management of electrical power plants.
In the near future, Indonesia EEC will establish a joint venture company with a reputable loc al
company who has experience and capability in performing EPC works of power projects, as well
as financial capability, and will broaden the coverage by expanding into additional service areas.
Indonesia EEC currently has an admin staff of seventeen individuals that cover sales,
marketing, ac counting etc. Once projects have been secured, then project offices will be
established and project personnel and staff will be recruited. Project office organization and staff
will encompass the engineering, proc urement, and construction divisions.
The Market
At the moment there is a real opportunity to increase Indonesia's power infrastructure as the
government owned power utility (PLN) has not been able to deliver a reliable and cost
effective power system. However, the current situation in Indonesia is charac terized by a
continuing downward economic drift. It seems reasonable, however, that the company's
target market sectors have strength to be credible buyers in the Indonesian power business,
since their business orientation is foc used in the export market. The company fac es significant
rivalry from a variety of direct and indirect competitors.
In Indonesia, there are twelve market sectors of power generation business in which Indonesia
EEC will be seeking prospec ts on a foc used and proactive approach.
Page 1
1.1 Objectives
The financial and marketing objectives of Indonesia EEC follow.
Financial Objectives
1. Sales starting at $XXXX, and growing eac h year to $XXXX, $XXXX, $XXXX, and $XXXX by
Year 5.
2. High average gross margin precent of sales revenue for EPC jobs. When the joint
venture company has been established and has been in operation for four years, it will
also produce excellent IRR for 25 years, which will create different types of jobs: build,
own, operate (BOO), build, operate, transfer (BOT), build, lease, transfer (BLT), build and
rent (B&R), and energy conversion contrac t (ECC).
3. Net income of more than XX% of sales by the fifth year.
Marketing Objectives
The financial objectives are converted into marketing objectives. If the company wants to earn
its targets for gross margin and sales revenue from the EPC works then it must set an average
profit margin on sales from the EPC works of average XX%. When the joint venture company has
been established and has been in operation for four years, then the joint venture company will
also produce an average XX% IRR for 25 years BOO, BOT, BLT, B&R, and ECC jobs. To ac hieve
these targets, the company will have to set certain goals for customer awareness, such
as proactively approaching the prospec tive clients including project financing providers,
establishing a joint venture with a reputable loc al company who has experience and capability
in performing EPC works of power projects, as well as the financial capability to be equal
Page 2
partners with Indonesia EEC.
Thus the marketing objective might read:
· Ac hieve a targeted sales revenue of $XXXX in Year 1, $XXXX in Year 2, $XXXX in Year
3, $XXXX in Year 4, and $XXXX in Year 5 from the EPC works.
· Expand customer awareness over the planning period.
· Reduce competition, reduce risks, and lower price levels by establishing a joint venture
with a reputable loc al company who has experience in performing EPC works of power
projects, as well as the financial capability to be equal partners with Indonesia EEC .
· Pursuing not only EPC prospec ts, but also BOO, BOT, BLT, B&R, and ECC prospec ts.
· Utilizing the joint venture company as the main entity of Indonesia EEC to conduct
business in Indonesia.
1.2 Mission
The mission of the Indonesia EEC is to establish a strong presence in Indonesia to implement all
provisions of the Energy Engineering & Construction (EEC) mission statement with the specific
mission of bec oming the leading full service EPC in Indonesia. Also, Indonesia EEC's role to be the
leader in the business of BOO, BOT, BLT, B&R, and ECC in the Indonesian captive power
sector, will be built through a joint venture approach.
The broad mission requires the following objectives within Indonesia:
1. To obtain projects in all areas of EEC services.
2. Reduce the costs of performing work to the point that the Indonesian operation can
provide engineering, proc urement, and support services at a lower cost than
those provided by the U.S. office.
1.3 Keys to Success

1. Marketing power. Indonesia EEC needs to have its services on the shelves as the most
reliable, high-quality, cost effective services in the industry, with enough marketing
power to maintain an eight percent market share of EPC services in the Indonesian
captive power sector.
2. Excellence in fulfilling the promise. To realize a benefit, a claim must be made and proof
presented.
3. Providing clients with both solutions and value creations. Helping the clients to increase
their own profit potential.
4. Quality service and customer satisfac tion. Everything we sell is guaranteed, so the
services have to do what the customers want. Long-term customer satisfac tion is critical
to our survival.
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5. Leveraging from a single pool of expertise into multiple revenue-generating

opportunities: Engineering & Architect (E&A), project consulting, project management,
Engineering & Proc urement (E&P), and Engineering & Construction (E&C).
6. The right management team, with strong foundations in marketing, management, finance,
and services development.
2.0 Company Summary

Indonesia EEC is a subsidiary company of United States Energy Engineering & Construction (U.
S. EEC) that provides services including engineering, design, proc urement, project
management, construction and construction management, environmental consulting,
management consulting, quality assurance and quality control, information management,
operations and maintenance, and proc ess technology development.
U.S. EEC's management wants Indonesia EEC to deliver a good financial performance. As a
subsidiary company of U.S. EEC, Indonesia EEC sets the following objectives for the products
and services lines of EPC power generation and power delivery projects:
1. Expand customer awareness over the planning period.
2. Reduce competition and risks while lowering price levels by establishing a joint venture
with a reputable loc al company who also has experience in performing EPC power
projects.
3. Pursuing not only EPC prospec ts, but also BOO, BOT, BLT, B&R, and ECC prospec ts.
4. Utilizing the joint venture company as the main entity of EEC to conduct business in
Indonesia, and to provide all aspec ts of energy engineering services.
2.1 Company Ownership

Indonesia EEC was created as an Indonesian "Perseroan Terbatas" (PT.) corporation based in
Jakarta, Indonesia, under the Foreign Investment Laws of Republic of Indonesia. The company
is owned entirely by the Energy Engineering & Construction company of U.S (U.S. EEC).
2.2 Company History

EEC has been establishing its presence in the Indonesian market since the 1980s by opening
and operating a representative office in Jakarta. It recognized the need for establishing a
presence as a loc al company who meets the spec ific needs of its prospec tive customers, as well
as its larger, long-term U.S. customers who invested in both Indonesia and the Southeast Asia
Region.
Indonesia EEC was founded in 1996. Shares in the company are owned entirely by U.S. EEC.
Page 4
Page 5
Table: Past Performance

Past Performance
1996 1997 1998
Sales $50,000,000 $65,000,000 $87,500,000
Gross Margin $23,000,000 $29,900,000 $40,250,000
Gross Margin % 46.00% 46.00% 46.00%
Operating Expenses $4,800,000 $4,850,000 $4,645,000
Collection Period (days) 72 63 63
Balance Sheet
1996 1997 1998
Current Assets
Cash $15,000,000 $19,500,000 $26,250,000
Accounts Receivable $6,112,981 $7,946,875 $10,697,716
Other Current Assets $525,931 $683,710 $920,380
Total Current Assets $21,638,912 $28,130,585 $37,868,096
Long-term Assets
Long-term Assets $710,837 $924,089 $1,243,965
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $710,837 $924,089 $1,243,965
Total Assets $22,349,749 $29,054,674 $39,112,061
Current Liabilities
Accounts Payable $2,478,188 $3,221,644 $4,336,828
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $2,478,188 $3,221,644 $4,336,828
Long-term Liabilities $0 $0 $0
Total Liabilities $2,478,188 $3,221,644 $4,336,828
Paid-in Capital $1,996,500 $3,295,460 $4,743,900

Retained Earnings $116,967 $952,048 $1,781,333
Earnings $17,758,094 $21,585,522 $28,250,000
Total Capital $19,871,561 $25,833,030 $34,775,233
Total Capital and Liabilities $22,349,749 $29,054,674 $39,112,061
Other Inputs
Payment Days 30 30 30
Sales on Credit $31,098,365 $40,427,875 $54,422,140
Receivables Turnover 5.09 5.09 5.09
2.3 Company Locations and Facilities

The office is loc ated in downton Jakarta, Indonesia. This loc ation provides convenience, being
near the airport, but also allows the company room to grow. Currently, Indonesia EEC oc cupies
an 800-square meter spac e, with offices for eac h department.
Page 6
3.0 Services
Indonesia EEC offers good quality and cost effective service in engineering, design, proc urement,
project management, construction and construction management, environmental consulting,
management consulting, quality assurance and quality control, information management,
operations and maintenance and proc ess technology development.
3.1 Service Description

Indonesia EEC offers expertise in the services it offers. With its variety of services, the company
sells them so as to allow clients to choose their preferred benefit(s). These include:
1. Engineering & Architect (E&A).

2. Engineering & Proc urement (E&P).
3. Engineering & Construction (E&C).
4. Project Management (PM).
3.2 Competitive Comparison

The approach Indonesia EEC will take to differentiate itself is to convert its features into the
client's benefits; the company needs to offer real benefits rather than only define the features
to its clients.
The benefits it sells shall include many intangibles: reliability, optimizing the client's profit
potential, confidentiality, guaranteed quality, continuous improvements, technology transfer, and
cost effectiveness. Long-term customer satisfac tion is the most critical component of the
services offered by the company.
It is vital to establish presence in the market and to start making sales on the growing
segment. Personal relationships are important and memories are long. It is also vital to keep in
mind that it is wrong to wait for recovery before establishing market presence. Project and
market development timeframes in Indonesia are lengthy: three to four years or more;
however, this timeframe can be compressed by a strong loc al partner. This implies the need for
establishing a joint venture company rather than going it alone. Even under normal
circumstances, the company needs to enter the market on the basis of a long-term strategic
calculus, with c ommitment and resources. To every firm which is interested in participating in the
Indonesian market, now is the time to enter.
3.3 Sales Literature

The business begins with a general corporate and technical broc hure establishing the positioning.
This broc hure will be provided by U.S. EEC.
Page 7
3.4 Sourcing
Indonesia EEC works with all the major power plants and power transmission equipment
suppliers on a project-by- project basis and will not represent any of them under an exclusive
agreement.
It also works with a number of reputable and experienced loc al engineering and construction
companies under either a project-by- project or consortium basis. This is done to reduce
competition and risks and to provide clients with c ompetitive pricing without cutting profits, as
well as maximizing the loc al contents, and shifting the responsibility to provide bid bonds,
performance bonds, and credit lines to the loc al partner.
3.5 Technology
As a subsidiary company of U.S. EEC, Indonesia EEC will utilize its parent company's
capabilities, experience, resources, and technologies as follows:
1. The world-class leaders in the design and construction of power generation and power
transmission fac ilities.
2. Full Engineering, Proc urement, and Construction (EPC) capabilities.
3. Fossil-fueled power plants EPC, hydropower plants EPC, geothermal power plants EPC,
nuclear power plants EPC, and plant services.
4. Power plant engineering software and power transmission system engineering software
both help ensure lowest cost and design of power generation and transmission fac ilities.
3.6 Future Services

In the near future, Indonesia EEC will establish a joint venture company with a reputable loc al
company who has experience and capability in performing EPC works of power projects, as well
as financial capability, and will broaden the coverage by expanding into additional service
areas, e.g., captive power project development and operation.
4.0 Market Analysis Summary

In Indonesia, there are twelve market sectors of power generation business in which Indonesia
EEC will be seeking prospec ts on a foc used and proactive approach.
The Market Analysis table shows the estimated captive power project values in the dollar per
year, within the period of 1999-2003, based on the present circumstances. This table is a live
and dynamic table. The numbers of dollars eac h year could increase as the economy corrects
itself.
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4.1 Market Segmentation

The potential clients/c ustomers during the five-year implementation of this plan for power
generation EPC services are composed of twelve groups:
1. Captive power developers (this type of client could be any industrial fac ilities owner
who needs power supply for its own fac ilities or their subsidiaries in the form of IPP
developers)
2. Pulp and paper producers
3. Textile producers
4. Cement mills
5. Mining industries
6. Shrimp farming
7. Sugar producers
8. Palm oil producers
9. Fertilizer manufacturing
10. Petroc hemicals
11. Oil & Gas Exploration & Production Companies
12. Oil Refinery Complexes
It seems reasonable, based on strong fundamentals, that the above twelve sectors have
strength to be credible buyers in the Indonesian power business, since their business
orientation is foc used in the export market leads ac ceptable development risks.
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Table: Market Analysis

Market Analysis
1999 2000 2001 2002 2003
Potential Customers Growth CAGR
Captive Plant Developer 3% 54,000,000 55,620,000 57,288,600 59,007,258 60,777,476 3.00%
Pulp & Paper Mills 15% 272,000,000 312,800,000 359,720,000 413,678,000 475,729,700 15.00%
Textile Manufacturers 11% 218,000,000 241,980,000 268,597,800 298,143,558 330,939,349 11.00%
Cement Mills 5% 22,000,000 23,100,000 24,255,000 25,467,750 26,741,138 5.00%
Mining 18% 41,000,000 48,380,000 57,088,400 67,364,312 79,489,888 18.00%
Shrimp Farms 20% 191,000,000 229,200,000 275,040,000 330,048,000 396,057,600 20.00%
Sugar Mills 4% 14,000,000 14,560,000 15,142,400 15,748,096 16,378,020 4.00%
Palm Oil Processing 5% 16,000,000 16,800,000 17,640,000 18,522,000 19,448,100 5.00%
Fertilizer Manufacturers 7% 136,000,000 145,520,000 155,706,400 166,605,848 178,268,257 7.00%
Petrochemical Processing 5% 27,000,000 28,350,000 29,767,500 31,255,875 32,818,669 5.00%
Oil & Gas Fields 5% 22,000,000 23,100,000 24,255,000 25,467,750 26,741,138 5.00%
Oil Refineries 5% 109,000,000 114,450,000 120,172,500 126,181,125 132,490,181 5.00%
Total 12.16% 1,122,000,00 1,253,860,00 1,404,673,60 1,577,489,57 1,775,879,51 12.16%
0 0 0 2 6
4.2 Target Market Segment Strategy

Indonesia EEC will foc us on major electricity consumers in Indonesia who are very demanding
regarding reliability of their power supply systems.
The current situation in Indonesia can be charac terized by commercial paralysis, policy paralysis,
and for the moment, a continuing downward economic drift. But it seems reasonable that the
previously listed twelve sectors have strength to be credible buyers in the Indonesian power
business, since their business orientation is foc used in the export market leads ac ceptable
development risks. The uncertainty lies in how long the country's economic recovery will take
and with what twists and turns in the political and economic structure will offer tremendous
Page 10
opportunities for the the company in developing badly needed, inside-the-fence captive power
projects to satisfy the demand. This requirement has not diminished bec ause of the crisis. It
even increases due to the government owned power utility (PLN) absence to deliver a reliable
and cost effective power system.
For the short term, the company needs to be flexible and creative in pricing and financing its
services. Indonesian buyers are likely to be more dependent than ever on supplier financing,
and looking for bargains; unfortunately, the current economic erosion situation has put them in
a compromising position for bargaining. The company needs to be proactive in assisting its
customers in finding sources of financing, inventing creative payment terms or offering a more
lenient repayment period, if possible, and looking for ways to cut the price of supplies and
services. Barter trade has often been a required element of major government projects, but it
would be no surprise to see more emphasis on barter trade in the coming period.
4.3 Service Business Analysis

EPC Contrac tors in power business range from major global Original Equipment Manufac turers
(OEM) of the power generation and transmission plants to the loc al engineering and construction
firms.
4.3.1 Major Local Players

Some major domestic players who are estimated as Indonesia EEC's potential competitors in
the power EPC business are listed below. They are politically well-connected at this time and
seem to be aggressively pursuing expansion into other infrastructure markets in Indonesia,
most notably in power and industrial plants.
1. PT. ABB Energy System Indonesia (PT. ABB-ESI), a joint venture of ABB-CE and PT.
PAL, a member of BPIS.
2. PT. Rekayasa Industry (PT. RI), a government-owned EPC contrac tor company under
the management of the Directorate of Machineries and Base Metals Industries, Ministry of
Industry and Trade. PT. RI is well established in the fertilizer proc essing field.
3. PT. Inti Karya Persada Tehnik (PT. IKPT), a loc al EPC contrac tor company. PT. IKPT is
well established in the petroleum, petroc hemical, and geothermal fields.
4. Indonesia Power (previously "PT. PLN (Persero) Pembangkitan Tenaga Listrik Jawa Bali-
I), a subsidiary operating company of PT. PLN (Persero) for the western part of
the Java- Bali power system.
5. PT. PLN (Persero) Pembangkitan Tenaga Listrik Jawa Bali-II (PLN PJB-II), a subsidiary
operating company of PT. PLN (Persero) for the eastern part of the Java- Bali power
system.
6. PT. Tripatra.
7. PT. Gunanusa.
8. PT. Truba Jurong.

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9. PT. Pertafenikki.
10. PT. Aalborg Sunrod Indonesia.
4.3.2 Major Foreign Players

The following companies are major foreign players in Indonesian power business:
1. Original Equipment Manufac turers. They are not fully recognized as competitors;
however, these companies are seen to be the strongest competitors in Indonesia: ABB,
GE, Westinghouse, Siemens, Rolls- Royce, Ansaldo, Mitsubishi, Fuji, Toshiba, Babc oc k &
Wilcox, GEC Alsthom, Foster Wheeler, Austrian Energy, Coc kerill Mechanical Industries
(CMI), John Brown Ltd., Kvaerner, Lurgi, Ishikawajima Harima (IHI), Wartsila, Caterpillar,
Pielstick, MAN, and Niigata.
2. Foreign Engineering/EPC companies: Duke Fluor/Daniels, Stone & Webster, Bechtel,

Blac k & Veatch, Sargent & Lundy, Raytheon (EBASCO), Daelim, Hyundai, SsangYong,
Balfour Beatty, Jaako Poyry, BE&K Bechtel, Pekka Hemmi, Simons, JGC Corporation, Kajima
Corp., SNC Lavallin, and Chiyoda.
3. Trading Companies : Sumitomo Corporation, Marubeni, Mitsubishi Heavy Industries,

Kanematsu Corporation, and Mitsui.
4.3.3 Competition and Buying Patterns

Recent analysis indicate that total design cost of power plants in Indonesia has dec reased by
12%, while total construction cost of power plants in Indonesia has dec reased by 23.59% during
this economic turmoil, compared to data recorded in 1996. This analysis is based on the
assumptions that the loc al engineers and laborers salary was increased by 25% at the average
exchange rate of US$1 = Rp 7,200. By having a loc al production capability in Indonesia,
Indonesia EEC will be able to take advantage of this situation.
When the joint venture company between Indonesia EEC and its loc al partner has been
established, it will be able to reduce costs and increase profits by having a full-service
production office in Indonesia.
The critical issue for establishing a loc al production capability is the ability of Indonesia EEC to
hire, train, and retain highly qualified and motivated Indonesian engineers.
5.0 Strategy and Implementation Summary

One of the reasons why captive power has bec ome the most important sector in the
Indonesian power market is that the customers need the most reliable and efficient power
system to reduce the costs. The PLN subsidized electricity tariff is approximately 40% more
expensive, and its disturbance rate is high and getting worse.
Furthermore, PLN's inability to pay power and natural gas at the prevailing exchange rate has put
Page 12
both PLN and independent power producer (IPP) developers into a very difficult position to
move forward with their project implementation between 1999 and 2003. Meanwhile, in line
with the government's export increasing program to strengthen the national reserve funds, many
big electricity consumers will fac e their fast growing demand. This situation will compel many
electricity consumers (especially large industrial fac ilities) to set up their own c aptive power
plants.
As a result of this need, Indonesia EEC will foc us its marketing directive on those large, export-
oriented, industrial companies.
5.1 Competitive Edge

Indonesia EEC's overall competitive edge in Indonesia is that it brings its parent company's
name recognition as a "one-stop" services provider encompassing engineering, proc urement,
construction, and trade financing services. The parent company is seen as having more than
one hundred years' experience in the global industry.
One of the most important key fac tors in Indonesia EEC's competitive edge is its expertise in
providing ac cess to the trade financing, as follows:
1. Obtaining low-cost financing specific to the buyer's country.
2. Obtaining commercial and political risk insurance for non-guaranteed loans.
3. Furnishing and proc essing loan documentation for export credit agencies.
4. Preparing grant proposals and feasibility studies required by the funding institution when a
company moves into new markets.
5. Conducting studies to establish project feasibility.
6. Applying for and obtaining final commitment of funds based on feasibility studies.
7. Arranging for the best available financing through private national and international
banking institutions.
The establishment of a joint venture company between Indonesia EEC and a strong, experienced
loc al engineering and construction company is the most strategic step to overcome the
competition by reduced production costs as well as to improve flexibility in penetrating the
markets in developing countries, especially the Asia Region.
5.2 Sales Strategy

The captive power market in Indonesia will be foc used and integrated with the private customers
outside the multilateral/bilateral aid programs. To sell to this type of market, Indonesia EEC
needs to have these seven important propositions:
1. Proven expertise in project financing arrangements, espec ially under the barter trade
arrangements.
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2. Direct negotiation approaches with the clients.
3. Strategic alliances with a reputable loc al company who has experience as either an EPC
company or developer in Indonesian power sector, capability, and the in-house fac ilities
to perform the detailed engineering, proc urement, and construction of power projects.
4. Competitiveness in pricing.
5. Creative payment terms.
6. Contributions in enhancing the loc al manufacturing sector by making it more efficient

and competitive.
7. Proven expertise in the EPC of reliable and efficient power system.
5.2.1 Sales Forecast

We are planning to increase sales substantially in 2001. This is considered reasonable due to
the opportunities available in the industry.
January through March 2001 will offer the highest sales, as many clients will begin the
implementation of their projects.
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Table: Sales Forecast

Sales Forecast
1999 2000 2001 2002 2003
Sales
Engineering & Architect (E&A) $25,000,000 $26,250,000 $29,000,000 $31,250,000 $33,750,000
Engineering & Procurement $40,000,000 $42,000,000 $46,400,000 $50,000,000 $54,000,000
Engineering & Construction $15,000,000 $15,750,000 $17,400,000 $18,750,000 $20,250,000
Project management (PM) $20,000,000 $21,000,000 $23,200,000 $25,000,000 $27,000,000
Total Sales $100,000,000 $105,000,000 $116,000,000 $125,000,000 $135,000,000
Direct Cost of Sales 1999 2000 2001 2002 2003

Engineering & Architect (E&A) $13,500,000 $14,175,000 $15,660,000 $16,875,000 $18,225,000
Engineering & Procurement $21,600,000 $22,680,000 $25,056,000 $27,000,000 $29,160,000
Engineering & Construction $8,100,000 $8,505,000 $9,396,000 $10,125,000 $10,935,000
Project management (PM) $10,800,000 $11,340,000 $12,528,000 $13,500,000 $14,580,000
Subtotal Direct Cost of Sales $54,000,000 $56,700,000 $62,640,000 $67,500,000 $72,900,000
6.0 Management Summary

Prior to the revenue, Indonesia EEC is led by one president director and two vice presidents
(vice president of sales and marketing and vice president of internal business management
(IBM)). They will be assisted by one sales manager (who is primarily responsible for sales and
market development in power sector), one marketing and business development manager (who is
primarily responsible for business development, services development, and research and
design), one finance manager, one human resources manager, one ac countant, two shared
secretaries, one legal officer, one administrative officer, one bookkeeper, and four clerks.
When projects have been secured, then project offices will be established and project
personnel and staff will be recruited. Project office organization and staff will encompass the
Page 15
engineering, proc urement, and construction divisions.
The administrative section obtains outside services from Indonesian professional firms for tax
reporting, legal and contrac t consulting, and immigration "consultants." It is expec ted that these
services will continue to be contrac ted out as the cost of full-time staff positions in these
specialists will be large.
6.1 Personnel Plan

Prior to the revenue, the team includes 17 employees, under a president and two vice
presidents.
Indonesia EEC's main management divisions are Sales & Marketing (the marketing, sales, services
research and development, and public relations operations will be managed by this division) and
Internal Business Management (the legal, ac counting, administration, and human resources
development sections will be managed by this division).
The following table summarizes our personnel plan for the five years of this business plan.
Table: Personnel
Personnel Plan
1999 2000 2001 2002 2003
President Director/Chief Representative $54,000 $59,400 $65,340 $71,874 $79,061
Executive Secretary $6,480 $7,150 $7,865 $8,651 $9,516
VP Sales & Marketing $25,992 $28,600 $31,460 $34,606 $38,066
Sales Manager $15,600 $17,160 $18,876 $20,764 $22,840
Marketing & Business Dev. Manager $15,600 $17,160 $18,876 $20,764 $22,840
Secretary $3,900 $4,290 $4,719 $5,191 $5,710
VP Internal Business Management (IBM) $25,992 $28,600 $31,460 $34,606 $38,066
Finance Manager/Senior Accountant $15,600 $17,160 $18,876 $20,764 $22,840
Accountant $12,000 $13,200 $14,520 $15,972 $17,569
Human Resources Manager $15,600 $17,160 $18,876 $20,764 $22,840
Administrative Officer $12,000 $13,200 $14,520 $15,972 $17,569
Legal Officer $12,000 $13,200 $14,520 $15,972 $17,569
Bookkeeper $3,900 $4,290 $4,719 $5,191 $5,710
Clerical $1,296 $1,430 $1,573 $1,730 $1,903
Clerical $1,296 $1,430 $1,573 $1,730 $1,903
Clerical $1,296 $1,430 $1,573 $1,730 $1,903
Clerical $1,296 $1,430 $1,573 $1,730 $1,903
Total People 0 0 0 0 0
Total Payroll $223,848 $246,290 $270,919 $298,011 $327,808
6.2 Legal, Financial and Accounting Status

1. Legal Structure: Indonesia EEC is a limited liability Indonesian-registered corporation
under Foreign Investment Laws of the Republic of Indonesia.
2. Financial and Ac counting Status: Operations in Indonesia are not kept in a separate
ac counting system and the current system does not allow any disc rete or ac curate
Page 16
information about total costs for loc al operations.
7.0 Financial Plan

The following sections present the financial analysis for Indonesia EEC.
7.1 Important Assumptions

The ac companying table lists Indonesia EEC's main assumptions for developing its financial
projections. The most sensitive assumption is collection days. Indonesia EEC would like to
improve collection days to take pressure off of its working capital.
Table: General Assumptions

General Assumptions
1999 2000 2001 2002 2003
Plan Month 1 2 3 4 5
Current Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50%
Long-term Interest Rate 9.00% 9.00% 9.00% 9.00% 9.00%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0
Page 17
7.2 Break-even Analysis

The following table and chart summarize the Break-even Analysis, including monthly units and
sales break-even points.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even $905,693
Assumptions:
Average Percent Variable Cost 54%
Estimated Monthly Fixed Cost $416,619
Page 18
7.3 Projected Profit and Loss

The detailed monthly pro-forma income statement for the first year is included in the appendix.
The annual estimates are included below.
Page 19
Table: Profit and Loss

Pro Forma Profit and Loss
1999 2000 2001 2002 2003
Sales $100,000,000 $105,000,000 $116,000,000 $125,000,000 $135,000,000
Direct Cost of Sales $54,000,000 $56,700,000 $62,640,000 $67,500,000 $72,900,000
Power System Studies $58,000 $60,900 $63,945 $67,142 $70,499
Total Cost of Sales $54,058,000 $56,760,900 $62,703,945 $67,567,142 $72,970,499
Gross Margin $45,942,000 $48,239,100 $53,296,055 $57,432,858 $62,029,501

Gross Margin % 45.94% 45.94% 45.94% 45.95% 45.95%
Expenses
Payroll $223,848 $246,290 $270,919 $298,011 $327,808
Sales and Marketing and Other Expenses $4,610,000 $4,875,000 $5,430,000 $5,850,000 $6,310,000
Depreciation $0 $0 $0 $0 $0
Leased Equipment $6,000 $6,500 $7,000 $7,500 $8,000
Utilities $72,000 $72,000 $72,000 $84,000 $84,000
Insurance $6,000 $6,000 $7,000 $7,000 $8,000
Rent $48,000 $48,000 $48,000 $48,000 $48,000
Payroll Taxes $33,577 $36,944 $40,638 $44,702 $49,171
Other $0 $0 $0 $0 $0
Total Operating Expenses $4,999,425 $5,290,734 $5,875,557 $6,339,213 $6,834,979
Profit Before Interest and Taxes $40,942,575 $42,948,367 $47,420,498 $51,093,645 $55,194,521
EBITDA $40,942,575 $42,948,367 $47,420,498 $51,093,645 $55,194,521
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $10,235,644 $10,737,092 $11,855,125 $12,773,411 $13,798,630
Net Profit $30,706,931 $32,211,275 $35,565,374 $38,320,234 $41,395,891

Net Profit/Sales 30.71% 30.68% 30.66% 30.66% 30.66%
Page 20
7.4 Projected Cash Flow

Cash flow projections are critical to the company's success. The monthly cash flow is shown in
the chart, with one bar representing the cash flow per month and the other representing the
monthly balance. The annual cash flow figures are included here in the following table.
Page 21
Detailed monthly numbers are included in the appendix.
Page 22
Table: Cash Flow

Pro Forma Cash Flow
1999 2000 2001 2002 2003
Cash Received
Cash from Operations

Cash Sales $50,000,000 $52,500,000 $58,000,000 $62,500,000 $67,500,000
Cash from Receivables $53,281,049 $52,129,167 $57,184,167 $61,832,500 $66,758,333
Subtotal Cash from Operations $103,281,049 $104,629,167 $115,184,167 $124,332,500 $134,258,333
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $103,281,049 $104,629,167 $115,184,167 $124,332,500 $134,258,333
Expenditures 1999 2000 2001 2002 2003
Expenditures from Operations

Cash Spending $223,848 $246,290 $270,919 $298,011 $327,808
Bill Payments $66,791,937 $73,194,155 $79,537,301 $85,870,683 $92,709,626
Subtotal Spent on Operations $67,015,785 $73,440,445 $79,808,220 $86,168,694 $93,037,434
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $67,015,785 $73,440,445 $79,808,220 $86,168,694 $93,037,434
Net Cash Flow $36,265,265 $31,188,721 $35,375,946 $38,163,806 $41,220,899

Cash Balance $62,515,265 $93,703,986 $129,079,932 $167,243,738 $208,464,638
Page 23
7.5 Projected Balance Sheet

The following Balance Sheet table shows healthy growth of net worth and a strong financial
position. The monthly estimates are included in the appendix.
Table: Balance Sheet

Pro Forma Balance Sheet
1999 2000 2001 2002 2003
Assets
Current Assets
Cash $62,515,265 $93,703,986 $129,079,932 $167,243,738 $208,464,638
Accounts Receivable $7,416,667 $7,787,500 $8,603,333 $9,270,833 $10,012,500
Other Current Assets $920,380 $920,380 $920,380 $920,380 $920,380
Total Current Assets $70,852,311 $102,411,866 $138,603,645 $177,434,952 $219,397,518
Long-term Assets
Long-term Assets $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965
Total Assets $72,096,276 $103,655,831 $139,847,610 $178,678,917 $220,641,483
Liabilities and Capital 1999 2000 2001 2002 2003
Current Liabilities
Accounts Payable $6,614,112 $5,962,392 $6,588,798 $7,099,870 $7,666,545
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $6,614,112 $5,962,392 $6,588,798 $7,099,870 $7,666,545
Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $6,614,112 $5,962,392 $6,588,798 $7,099,870 $7,666,545
Paid-in Capital $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900

Retained Earnings $30,031,333 $60,738,264 $92,949,539 $128,514,913 $166,835,146
Earnings $30,706,931 $32,211,275 $35,565,374 $38,320,234 $41,395,891
Total Capital $65,482,164 $97,693,439 $133,258,813 $171,579,046 $212,974,937
Total Liabilities and Capital $72,096,276 $103,655,831 $139,847,610 $178,678,917 $220,641,483
Net Worth $65,482,164 $97,693,439 $133,258,813 $171,579,046 $212,974,937
Page 24
7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 8711, Engineering Services, are shown for
comparison.
Page 25
Table: Ratios
Ratio Analysis
1999 2000 2001 2002 2003 Industry Profile
Sales Growth 14.29% 5.00% 10.48% 7.76% 8.00% 7.10%
Percent of Total Assets

Accounts Receivable 10.29% 7.51% 6.15% 5.19% 4.54% 35.40%
Other Current Assets 1.28% 0.89% 0.66% 0.52% 0.42% 38.30%
Total Current Assets 98.27% 98.80% 99.11% 99.30% 99.44% 77.40%
Long-term Assets 1.73% 1.20% 0.89% 0.70% 0.56% 22.60%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 9.17% 5.75% 4.71% 3.97% 3.47% 44.50%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 11.70%
Total Liabilities 9.17% 5.75% 4.71% 3.97% 3.47% 56.20%
Net Worth 90.83% 94.25% 95.29% 96.03% 96.53% 43.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 45.94% 45.94% 45.94% 45.95% 45.95% 0.00%
Selling, General & Administrative Expenses 15.24% 15.26% 15.29% 15.29% 15.28% 81.80%
Advertising Expenses 0.03% 0.04% 0.04% 0.04% 0.04% 0.20%
Profit Before Interest and Taxes 40.94% 40.90% 40.88% 40.87% 40.88% 2.50%
Main Ratios
Current 10.71 17.18 21.04 24.99 28.62 1.69
Quick 10.71 17.18 21.04 24.99 28.62 1.37
Total Debt to Total Assets 9.17% 5.75% 4.71% 3.97% 3.47% 56.20%
Pre-tax Return on Net Worth 62.52% 43.96% 35.59% 29.78% 25.92% 6.00%
Pre-tax Return on Assets 56.79% 41.43% 33.91% 28.60% 25.02% 13.60%
Additional Ratios 1999 2000 2001 2002 2003

Net Profit Margin 30.71% 30.68% 30.66% 30.66% 30.66% n.a
Return on Equity 46.89% 32.97% 26.69% 22.33% 19.44% n.a
Activity Ratios
Accounts Receivable Turnover 6.74 6.74 6.74 6.74 6.74 n.a
Collection Days 60 53 52 52 52 n.a
Accounts Payable Turnover 10.44 12.17 12.17 12.17 12.17 n.a
Payment Days 29 32 29 29 29 n.a
Total Asset Turnover 1.39 1.01 0.83 0.70 0.61 n.a
Debt Ratios
Debt to Net Worth 0.10 0.06 0.05 0.04 0.04 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $64,238,199 $96,449,474 $132,014,848 $170,335,081 $211,730,972 n.a
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.72 0.99 1.21 1.43 1.63 n.a
Current Debt/Total Assets 9% 6% 5% 4% 3% n.a
Acid Test 9.59 15.87 19.73 23.69 27.31 n.a
Sales/Net Worth 1.53 1.07 0.87 0.73 0.63 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a
Page 26
Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Engineering & Architect (E&A) 0% $6,250,000 $3,750,000 $2,500,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $2,500,000
Engineering & Procurement 0% $10,000,000 $6,000,000 $4,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $4,000,000
Engineering & Construction 0% $3,750,000 $2,250,000 $1,500,000 $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 $1,500,000
Project management (PM) 0% $5,000,000 $3,000,000 $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $2,000,000
Total Sales $25,000,000 $15,000,000 $10,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $10,000,000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Engineering & Architect (E&A) $3,375,000 $2,025,000 $1,350,000 $675,000 $675,000 $675,000 $675,000 $675,000 $675,000 $675,000 $675,000 $1,350,000
Engineering & Procurement $5,400,000 $3,240,000 $2,160,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 $1,080,000 $2,160,000
Engineering & Construction $2,025,000 $1,215,000 $810,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $810,000
Project management (PM) $2,700,000 $1,620,000 $1,080,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $1,080,000
Subtotal Direct Cost of Sales $13,500,000 $8,100,000 $5,400,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $5,400,000
Page 1
Appendix
Table: Personnel
Personnel Plan
President Director/Chief Representative 0% $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Executive Secretary 0% $540 $540 $540 $540 $540 $540 $540 $540 $540 $540 $540 $540
VP Sales & Marketing 0% $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166
Sales Manager 0% $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Marketing & Business Dev. Manager 0% $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Secretary 0% $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325
VP Internal Business Management (IBM) 0% $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166 $2,166
Finance Manager/Senior Accountant 0% $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Accountant 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Human Resources Manager 0% $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300
Administrative Officer 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Legal Officer 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Bookkeeper 0% $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325 $325
Clerical 0% $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108
Clerical 0% $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108
Clerical 0% $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108
Clerical 0% $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108 $108
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Long-term Interest Rate 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $25,000,000 $15,000,000 $10,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $10,000,000
Direct Cost of Sales $13,500,000 $8,100,000 $5,400,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $5,400,000
Power System Studies $5,000 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0
Total Cost of Sales $13,505,000 $8,105,000 $5,406,000 $2,706,000 $2,706,000 $2,706,000 $2,706,000 $2,706,000 $2,706,000 $2,706,000 $2,700,000 $5,400,000
Gross Margin $11,495,000 $6,895,000 $4,594,000 $2,294,000 $2,294,000 $2,294,000 $2,294,000 $2,294,000 $2,294,000 $2,294,000 $2,300,000 $4,600,000
Gross Margin % 45.98% 45.97% 45.94% 45.88% 45.88% 45.88% 45.88% 45.88% 45.88% 45.88% 46.00% 46.00%
Expenses
Payroll $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654
Sales and Marketing and Other $388,500 $382,000 $382,000 $388,500 $382,000 $382,000 $388,500 $382,000 $382,000 $388,500 $382,000 $382,000
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Utilities $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Payroll Taxes 15% $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798 $2,798
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $420,952 $414,452 $414,452 $420,952 $414,452 $414,452 $420,952 $414,452 $414,452 $420,952 $414,452 $414,452
Profit Before Interest and Taxes $11,074,048 $6,480,548 $4,179,548 $1,873,048 $1,879,548 $1,879,548 $1,873,048 $1,879,548 $1,879,548 $1,873,048 $1,885,548 $4,185,548
EBITDA $11,074,048 $6,480,548 $4,179,548 $1,873,048 $1,879,548 $1,879,548 $1,873,048 $1,879,548 $1,879,548 $1,873,048 $1,885,548 $4,185,548
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $2,768,512 $1,620,137 $1,044,887 $468,262 $469,887 $469,887 $468,262 $469,887 $469,887 $468,262 $471,387 $1,046,387
Net Profit $8,305,536 $4,860,411 $3,134,661 $1,404,786 $1,409,661 $1,409,661 $1,404,786 $1,409,661 $1,409,661 $1,404,786 $1,414,161 $3,139,161
Net Profit/Sales 33.22% 32.40% 31.35% 28.10% 28.19% 28.19% 28.10% 28.19% 28.19% 28.10% 28.28% 31.39%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $12,500,000 $7,500,000 $5,000,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $5,000,000
Cash from Receivables $5,348,858 $5,765,525 $12,333,333 $7,416,667 $4,916,667 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Subtotal Cash from Operations $17,848,858 $13,265,525 $17,333,333 $9,916,667 $7,416,667 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $7,500,000
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $17,848,858 $13,265,525 $17,333,333 $9,916,667 $7,416,667 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $7,500,000
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations

Cash Spending $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654
Bill Payments $4,892,688 $16,457,314 $10,011,793 $6,737,681 $3,576,398 $3,571,685 $3,571,848 $3,576,398 $3,571,685 $3,571,848 $3,576,248 $3,676,352
Subtotal Spent on Operations $4,911,342 $16,475,968 $10,030,447 $6,756,335 $3,595,052 $3,590,339 $3,590,502 $3,595,052 $3,590,339 $3,590,502 $3,594,902 $3,695,006
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,911,342 $16,475,968 $10,030,447 $6,756,335 $3,595,052 $3,590,339 $3,590,502 $3,595,052 $3,590,339 $3,590,502 $3,594,902 $3,695,006
Net Cash Flow $12,937,516 ($3,210,444) $7,302,886 $3,160,332 $3,821,615 $1,409,661 $1,409,498 $1,404,948 $1,409,661 $1,409,498 $1,405,098 $3,804,994
Cash Balance $39,187,516 $35,977,072 $43,279,958 $46,440,290 $50,261,905 $51,671,566 $53,081,064 $54,486,013 $55,895,674 $57,305,172 $58,710,270 $62,515,265
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $26,250,000 $39,187,516 $35,977,072 $43,279,958 $46,440,290 $50,261,905 $51,671,566 $53,081,064 $54,486,013 $55,895,674 $57,305,172 $58,710,270 $62,515,265
Accounts Receivable $10,697,716 $17,848,858 $19,583,333 $12,250,000 $7,333,333 $4,916,667 $4,916,667 $4,916,667 $4,916,667 $4,916,667 $4,916,667 $4,916,667 $7,416,667
Other Current Assets $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380 $920,380
Total Current Assets $37,868,096 $57,956,754 $56,480,785 $56,450,338 $54,694,003 $56,098,952 $57,508,612 $58,918,111 $60,323,059 $61,732,720 $63,142,219 $64,547,317 $70,852,311
Long-term Assets
Long-term Assets $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965 $1,243,965
Total Assets $39,112,061 $59,200,719 $57,724,750 $57,694,303 $55,937,968 $57,342,917 $58,752,577 $60,162,076 $61,567,024 $62,976,685 $64,386,184 $65,791,282 $72,096,276
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $4,336,828 $16,119,950 $9,783,571 $6,618,462 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,448,279 $6,614,112
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $4,336,828 $16,119,950 $9,783,571 $6,618,462 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,448,279 $6,614,112
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $4,336,828 $16,119,950 $9,783,571 $6,618,462 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,452,629 $3,452,629 $3,457,341 $3,448,279 $6,614,112
Paid-in Capital $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900 $4,743,900
Retained Earnings $1,781,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333 $30,031,333
Earnings $28,250,000 $8,305,536 $13,165,947 $16,300,608 $17,705,394 $19,115,055 $20,524,716 $21,929,501 $23,339,162 $24,748,823 $26,153,609 $27,567,770 $30,706,931
Total Capital $34,775,233 $43,080,769 $47,941,180 $51,075,841 $52,480,627 $53,890,288 $55,299,949 $56,704,734 $58,114,395 $59,524,056 $60,928,842 $62,343,003 $65,482,164
Total Liabilities and Capital $39,112,061 $59,200,719 $57,724,750 $57,694,303 $55,937,968 $57,342,917 $58,752,577 $60,162,076 $61,567,024 $62,976,685 $64,386,184 $65,791,282 $72,096,276
Net Worth $34,775,233 $43,080,769 $47,941,180 $51,075,841 $52,480,627 $53,890,288 $55,299,949 $56,704,734 $58,114,395 $59,524,056 $60,928,842 $62,343,003 $65,482,164
Page 6

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This sample business plan has been made available to users of Business Plan Pro®, business

Copyright © Palo Alto Software, Inc., 1995-2009 All rights reserved.

The undersigned reader ac knowledges that the information provided by

Upon request, this doc ument is to be immediately returned to _________________________.

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary.............................................................................................................................1

1.0 Executive Summary

3. Net income of more than XX% of sales by the fifth year.

Thus the marketing objective might read:

· Expand customer awareness over the planning period.

The broad mission requires the following objectives within Indonesia:

1. To obtain projects in all areas of EEC services.

1.3 Keys to Success

5. Leveraging from a single pool of expertise into multiple revenue-generating

2.0 Company Summary

1. Expand customer awareness over the planning period.

2.1 Company Ownership

2.2 Company History

Table: Past Performance

Total Assets $22,349,749 $29,054,674 $39,112,061

Paid-in Capital $1,996,500 $3,295,460 $4,743,900

Total Capital and Liabilities $22,349,749 $29,054,674 $39,112,061

2.3 Company Locations and Facilities

3.1 Service Description

1. Engineering & Architect (E&A).

3.2 Competitive Comparison

3.3 Sales Literature

2. Full Engineering, Proc urement, and Construction (EPC) capabilities.

3.6 Future Services

4.0 Market Analysis Summary

4.1 Market Segmentation

2. Pulp and paper producers

8. Palm oil producers

10. Petroc hemicals

11. Oil & Gas Exploration & Production Companies

12. Oil Refinery Complexes

Table: Market Analysis

4.2 Target Market Segment Strategy

4.3 Service Business Analysis

4.3.1 Major Local Players

8. PT. Truba Jurong.

10. PT. Aalborg Sunrod Indonesia.

4.3.2 Major Foreign Players

2. Foreign Engineering/EPC companies: Duke Fluor/Daniels, Stone & Webster, Bechtel,

3. Trading Companies : Sumitomo Corporation, Marubeni, Mitsubishi Heavy Industries,

4.3.3 Competition and Buying Patterns

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

1. Obtaining low-cost financing specific to the buyer's country.

2. Obtaining commercial and political risk insurance for non-guaranteed loans.

5. Conducting studies to establish project feasibility.

5.2 Sales Strategy

5. Creative payment terms.

6. Contributions in enhancing the loc al manufacturing sector by making it more efficient

7. Proven expertise in the EPC of reliable and efficient power system.

5.2.1 Sales Forecast

Table: Sales Forecast

Direct Cost of Sales 1999 2000 2001 2002 2003

6.0 Management Summary

6.1 Personnel Plan

Total Payroll $223,848 $246,290 $270,919 $298,011 $327,808

6.2 Legal, Financial and Accounting Status